North Carolina Down Payment Support Programs

Online Merchant account - The North Carolina Housing Finance Agency got two amazing plans for first-time Home Buyers. These systems will be the Down Payment Assistance System along with the Mortgage Credit Certificate.

Should you qualify for one of these programs and you purchase a property and December 1, 2009, you may also qualify for the $8,000 tax credit only enacted into law in the Federal Economic Stimulus Plan.

First, who's a first-time Home Buyer? A First Time Home Buyer is someone who has not owned a house in the past three years. It is exactly the same qualifying definition.

A Mortgage Credit Certificate (MCC) is a national tax credit to help home buyers with low and moderate incomes. All home owners can claim an itemized deduction for mortgage interest.

You are able to claim 20% of the interest you pay on your own mortgage as a credit on your federal income taxes if you qualify for the MCC. It is possible to save up to .

If you do qualify for the MCC you will have the ability to unite this with the $8,000 tax credit. This might reduce a buyer's tax liability by $10,000.

Who qualifies for an MCC is based in your income and also the price of the house you are buying. Household income means the “gross income of the mortgagor and every other man anticipated to reside in the dwelling who's 18 years old or older.”

The income and house price limitations Durham and Chatham Counties are listed below.

MCC Income Limitations 1 Man $61,500 2 Men $61,500 3 Persons $70,500 4 Men $70,500

MCC Sales Cost Limitations New Dwelling $220,000 Existing Dwelling $210,000

Who Qualifies for Down Payment Assistance?

Home buyers that need help with their deposit and closing prices might be able to get down payment assistance - or, in other words, interest-free, deferred second mortgages up to $8,000. The customer only needs to pay $1,000 of their own funds and the load would pay as much as $8,000 of the remaining balance.

This plan has more stringent income limitations than the MCC plan summarized above. Like the MCC program, it might be used in conjunction with all the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The down payment assistance, nevertheless, cannot be applied together with the MCC. This really is an either or situation.

The income and house price limitations Durham and Chatham Counties are given below.

Down Payment Assistance Income Limits

1 Man $39,950 2 Individuals $45,650 3 Individuals $51,350 4 Individuals $57,050

Down Payment Support Sales Cost Limits New Dwelling $210,000 Existing House $210,000